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Updated about 2 years ago on . Most recent reply

User Stats

104
Posts
26
Votes
Parker Fairfield
  • Rental Property Investor
  • North Conway, NH
26
Votes |
104
Posts

Sell 1 motel, 1031 reinvest into several other properties?

Parker Fairfield
  • Rental Property Investor
  • North Conway, NH
Posted

@Dave Foster wrote a good reply to a different thread... I'm looking for clarity AND more advice

30,000 foot overview-

I bought a small motel in summer of 2017 for $435,000 ($135k down, $300k mortgage).

Invested additional (approximately) $550,000.

Current mortgage payoff amount $290,000.

Looking at selling it, estimated sales price $3m. (FWIW, I've JUST decided to list it this week and haven't done any research on this)

Q1. What's my minimum amount I must put into 1031 Exchange(s) to minimize my tax burden? [As I understand it, my initial investment and additional invested cash (135k + 550k) would not need to be invested. I've learned that the depreciation amount is critical too ]

Q2. What's the best site describing the nuts and bolts on 1031 investing the remaining profits?

Q3.The remaining $1.9m or so (after mortgage and RE agent commissions, etc) could then be invested in any real estate project in the USA, correct?

[If possible, I’d love to buy land, and build an investment property on it… total spend about $1.1m. and also buy a few other investment properties]

Q4. Can I buy a business which has real estate?

Q5. What would you look to invest in anywhere, for maximum return over 8 to 10 year time horizon

Looking forward to constructive criticism and comments.

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